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Abdulaziz M. El-Tamimi
What is Value?
Value: That amount of some commodity, medium of exchange, etc.
that is considered to be equivalent to something else (Oxford English
Dictionary)
The Utility theory : The value of something is related to its utility in the sense that the more uses an item has the greater is its value
Iron and Gold
The Labor theory: This theory suggests that the value and labor are
proportional - the more labor work done on an item the higher its
value will be
One can increase the value of some product by simply selecting the
mode of production with the highest labor costs
The Cost theory: The value of some item is equated by its cost - the
more it costs the more value it gain
The value of a Christmas tree would be the same in June is as it in
December
Types of Value in VE
Value Engineers are most concerned with Economic Value, which
itself can be subdivided into four types,
Use value:
The work or service it can perform or help it can accomplish
Esteem Value:
Describes the feature or attractiveness of an item that causes it
to be desired
Cost value:
Which can be defined as the total cost of producing a particular
item and it represents the effort that must be expended to
acquire an item. (The sum of labor, material and overhead costs)
Exchange value:
Is the quality of an item that allows trading the item for
something else
It is a measure of all the properties or qualities of an item that
could make someone give something else up for it
Defining Value
The value of a product is a rating of the acceptance
of a product by the customer and hence the final
index of economic value.
The value of a product is always relative and it is the
result of a combination of the specific value types.
In general; value increases with higher exchange,
esteem and use value but decreases with higher cost
value
Value Engineering IS
System Oriented
a formal job plan to identify and remove unnecessary costs
A Cheapening Process
It does not cut cost by sacrificing needed reliability and
performance
Quality Control
It does more than review fail-safe reliability status of plant
or product design
Then the task becomes to increase the value or decrease the cost.
Job Plan
Value Engineering can be thought of as the use of
specific techniques in an organized manner
This organization is provided by the job plan which
can be defined as thought processes and activities
needed to properly perform a value engineering study
(Mansour, 1994)
the item being studied are generated by the use of creative thinking
In this phase all suggestions are recorded regardless of there
impracticability, and no judgment is made about any suggestion in this
phase
Alternates methods of accomplishing the same essential function of
The alternates resulting from the previous phase are now analyzed, not
to eliminate the impractical ideas , but to improve them to the point of
acceptance
Then the ideas that have the greatest chance of success are selected for
he next phase
5.
For example
If it was required to make an ashtray, a production engineer might
conduct a study which results in changing the base material or
changing the production method, while a value engineer study
could result in making an ashless cigarettes
Abdulaziz M. El-Tamimi
Examples:
Fingernail Clipper Clip Nails
Car Transport People
Copier Machine Make Copies
Example:
Function Model
Function is an abstraction Process:
It is The process of ignoring what is particular or incidental
and emphasizing what is general and essential.
Functions are satisfied by subsets of the product through
their operation
Constraint Relationship:
It is a statement of clear criterion that must be satisfied by a
product and requires consideration of the entire product to
determine the criterion value
Constraints are satisfied by properties of the entire product
Function hierarchy
Example
Example
NEEDS
Essential to the performance of
the task/function
Fulfills basic needs of the users
Secondary
Function
Basic Function
Solution
Solution
Solution
PROJECT SCOPE
Secondary
Function
WANTS
WHY
HOW
Not essential to the performance of the
task/function
Essential to productivity increase,
project acceptability
Fulfills the wants of the user